According to a source familiar with the matter at hand, Tesla Inc has reached a settlement with the U.S. state of Michigan to allow it to directly deliver its electric vehicles to customers in the state.

Tesla will be allowed to deliver vehicles within Michigan, but will have to issue titles for the vehicles in another state, which the customers can then transfer to Michigan, said the source.

In 2016, Tesla had sued Michigan officials following its refusal to allow it to sell cars directly to consumers.

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